Hi,

I'm in the market for replacing my 2002 A4 with a new car. The last A4 looked perfect and was great to drive, but it was falling apart the moment the warranty ended. So I'm not done with Audi yet, but I'd like to lease the next one for peace of mind. Either an '09 A4, a Passat CC, or a BMW.

I thought I had buying a car figured out, but leasing makes my head spin. Do you have any suggestions how to best comparison-shop on the web, and what to look for to get a good lease deal? The important #s like residual, money factor, etc. seem hard to come by, is there a web site somewhere that keeps a list?
I'm looking for a car that would cost in the $35k range with $5k down, 15k miles and a 3-year lease, what kind of payment should I expect?

Thanks!
Zak

 

My A4 was that exact lease...I turned in an old A6($3K) and added $2K cash...$5K total. 15,000 miles per year and my payment is $433 per month.
I'm happy because I got the A6 I traded in basically for free! The 12K lease was $419 per month.

I will buy the car at the end for $19,500.
Unless it gets beat-up that is.

 

Negotiate the lease price the same way as a purchase. The residual value of the vehicle is basically what is left of the purchase price of the vehicle (at MSRP) when you turn it in.

So a 3 year lease could have a residual value of say 60%. So for the 3 year lease, you pay 40% of the cars negotiated value plus interest, just like a purchase, plus sales tax on the value of the car you are paying for (40%).

The interest is basically the 'money factor' which is some decimal place # which you can multiply by 2400 to get the Interest rate. This is also usually not very negotiable and is based similarly to how you get finance rates when you buy, based on your credit rating and what the current incentive is. Japanese cars usually have great redisuals and money factors ebcause they subsidize their leases. Audi usually doesnt.

The residual can change based solely on how many miles you lease for, 10k, 12k 15k miles a year for example. You can usually find these #'s here on Audiworld forums because someone posted them.

Do not put money down on a lease. If the car is totaled, the finance company still owns the car not you. So the money you put down, you dont get back, ever.

So all the lease deals you see online and in the paper are smoke and mirrors. The fact is that leasing is based on the same principles as buying and the only thing that can adjust the value is what they are offering as a residual and a money factor which changes. Price of the car changes based on incentives and any negotiations you have done.

Just remember, residual is based on MSRP so its actually a good thing that they subtract from the larger #, rather than your negotiated #.

 

I was quoted a Premium Plus for $3000 due at signing (including tax, fees, 1st payment) and $575 monthly..

 

A 35k car with 5k down, using average residuals and MFs (55% and .002), would be under $400/month, tax and fees upfront. Obviously your payment would depend on the actual price paid (negotiation skills) and any change in lease variables (Audi Program changes).

 

As it has been mentioned, try for the best possible purchase price, as it helps a lot.

The residual on base cars are better than on loaded ones. so make sure you know the residual on all specs. 52% likely for a decent A4 over 3 years

The residual is based on the MSRP, NOT the purchase price, meaning you pay your deal price minus 52% of msrp with a money factor...which is really the interest.

Residuals go down as the years progresses, so lease early in the year! It might be 55% now and 50% later in the year.

In a taxed through the **** nation, (canada) leasing is even more attractive.....you don't loose the tax at the end of the lease when you walk away....if you trade you get the tax back...but get beat on the trade value vs private sale.

After 7 purchased new cars over the years...my 8th was a lease.

 

Do NOT put ANY money down.

If the money factor is high enough where it makes it worth it to put anything down, it's a crappy lease to begin with. Keep your 5 grand and invest it.

The #1 rule of car buying, whether buying or leasing, is not to get caught up in the monthly payment.

 

The down payment simply brings down the balance (what it takes to buy the car from the leasing co.) on the lease. The insurance co. paid me the difference between the car's market value and lease balance. I got a check for $7K on my '04 S4 with 18K miles that was totalled in '06.

 

I ended up for a car in the $40k range with $2k for signing (fees, title, etc.) - maybe a couple hundred went to car but don't remember - and 3yr/12k lease with payments around $600. Don't ask me how.